submit a series of documents<\/a> detailing how it was going to resolve issues around its bid. <\/p>\n\n\n\nAccording to previously announced information, MGM and Orix will each own 40 per cent of the consortium, while local investors will own the remaining 20 per cent. However, if the consortium does not attract more investors, the participation of MGM and Orix will increase to 50 per cent each, S&P said.<\/p>\n\n\n\n
In its report, the rating agency also said the aforementioned estimate assumes MGM\u2019s expectation that the project could be funded at 55 per cent debt to equity and added the casino operator believes its equity contribution could be spread over several years, perhaps 2024 to 2026.<\/p>\n\n\n\n
The rating agency then referred to MGM’s outlook and said the casino operator’s significant equity contribution poses a potential leverage risk in future years<\/strong>, as it will not receive any cash flow benefits from the project. Nonetheless, if successful, S&P said the IR could expand MGM’s geographic reach and scale, and enhance its global brand reputation as a developer of integrated resorts.<\/p>\n\n\n\nThe Osaka IR project is set to include three hotel products providing approximately 2,500 rooms<\/strong>, a MICE facility measuring 68,000 square meters, a 3,500-seat theatre, as well as various Japanese cultural experiences and retail facilities. It will also employ about 15,000 people.<\/p>\n","protected":false},"excerpt":{"rendered":"S&P Global Ratings Inc. has suggested the casino operator\u2019s equity contribution to a forthcoming integrated resort (IR) in Osaka could be between US$2bn and US$2.5bn.<\/p>\n","protected":false},"author":176,"featured_media":15032,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"is_press_release":false,"is_interview":false,"is_opinion":false,"focusai_summary":"S&P Global Ratings forecasts MGM Resorts International's equity contribution to the US$10bn Osaka Integrated Resort could range from US$2bn to US$2.5bn, spread over several years. The rating agency highlights potential leverage risk for MGM due to this significant investment without immediate cash flow benefits, pending government approval of the Osaka IR District Development Plan. The project, a consortium with ORIX, aims for a 2029 opening, enhancing MGM's global brand and scale.","focusai_entities":"S&P Global Ratings Inc., MGM Resorts International, ORIX, Ichiro Matsui","focusai_location":"Japan, Osaka","focusai_target_profile":"ceo_executive (1.0), regulator (0.8), operator_casino (1.0), investor_analyst (1.0), supplier_vendor (0.7), journalist_researcher (0.9)","focusai_suggestions":[{"label":"MGM Capital Deployment","query":"Given S&P's assessment of potential leverage risk, what specific financial covenants or capital structure adjustments might MGM Resorts International implement to mitigate the impact of its substantial equity contribution to the Osaka IR, particularly before cash flow generation?"},{"label":"Regulatory Approval Timeline","query":"What are the critical dependencies and potential delays in the Japanese government's approval process for the Osaka IR District Development Plan, and how might these affect the consortium's projected 2029 opening timeline and initial capital deployment schedule?"}],"footnotes":""},"categories":[157,16338],"tags":[16615],"class_list":["post-777001567","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-news","category-east-asia-news","tag-mgm-resorts"],"_links":{"self":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777001567","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/users\/176"}],"replies":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/comments?post=777001567"}],"version-history":[{"count":1,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777001567\/revisions"}],"predecessor-version":[{"id":777001568,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/posts\/777001567\/revisions\/777001568"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media\/15032"}],"wp:attachment":[{"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/media?parent=777001567"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/categories?post=777001567"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/focusgn.com\/asia-pacific\/wp-json\/wp\/v2\/tags?post=777001567"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}